The Trump administration suggested it would issue a new policy clarifying that imports of gold bars should not face tariffs, after the US government stunned traders by ruling that they would be subject to duties.
The White House intends to post an executive order in the near future to clarify what an official called misinformation about the tariffing of gold and other specialty products. The official detailed the plans Friday on condition of anonymity.
Spot gold and futures prices on New York’s Comex fell after the White House statement.
Gold Hit By Surprise US Tariffs, Unleashing New Turmoil (Video)
A Trump administration ruling that gold bars will be subject to tariffs stunned traders who had assumed they would be exempted, throwing bullion markets into turmoil.
Futures in New York, which are backed by bars shipped from Switzerland and other key trading and refining hubs, surged to a record.
Traders, analysts and executives across the industry had understood the bars would be exempt from reciprocal tariffs enacted by President Donald Trump, such as a 39% levy on Swiss goods. But when a gold refiner in Switzerland asked about it, US Customs and Border Protection clarified that one-kilogram and 100-ounce gold bars are subject to the levies, according to a letter from the agency.
The decision, if it remains in place, has sweeping implications for the flow of bullion around the world, and potentially for the smooth functioning of the US futures contract. Gold’s role as a financial asset and global currency sets it apart from other commodities like copper that have been roiled by tariffs, and traders said on Friday that shipments were freezing up in response to the shock news.
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